2020/08/24 by Walter H. Bruckman, Bruckman, Walter H.
Economics, Econometrics and Finance · Social Sciences · #Economic Theory and Policy #Economic and Social Development #Economic theories and models
paper · pdf · doi:10.48550/arxiv.2008.11275
This paper presents the way in which can be determined the exchange rates\nthat simultaneously balance the trade balances of all countries that trade with\neach other within a common market. A mathematical synthesis between the theory\nof comparative advantages of Ricardo and Mill and the New Theory on\nInternational Trade of Paul Krugman is also presented in this paper. This\nmathematical synthesis shows that these theories are complementary. Also\npresented in this paper is a proposal to organize a common market of the\nAmerican hemisphere. This economic alliance would allow to establish a\npolitical alliance for the common defense of the entire American hemisphere.\nThe formula we developed in this paper to determine the exchange rates of the\ncountries solves the problem that Mexico, Canada, Europe, Japan and China\ncurrently experience with the United States in relation to the deficits and\nsurpluses in the trade balance of the countries and their consequent impediment\nso that stable growth of international trade can be achieved.\n